300 Credit Score: What Does It Mean?

Someone with a 300 credit score is considered to have a poor credit score. This score might be due to a history of missed payments, debt, and even bankruptcy. But what does this mean for you and can you still qualify for credit cards, loans, and mortgages?

In this article, we’ll discuss what it means to have a 300 credit score, what you can qualify for, and how you can develop healthy credit habits to build your score up.

Is a 300 credit score good?

No, a 300 credit score is not considered good. In fact, 300 is the lowest credit score you can have on the FICO® and VantageScore® credit scoring models and is classed as a poor credit score or a deep subprime credit score. According to Experian, a 300 credit score is significantly below the average score of U.S. consumers, demonstrating that the borrower could be a higher risk to lenders.^[1]

Someone with a credit score of 300 will likely have financing applications denied by lenders due to them having unfavorable credit. If they do qualify, they may have to pay extra fees and put down deposits on credit cards. Some utility companies might also require someone with this credit score to pay security deposits on equipment or service contracts.^[1]

Your credit score is calculated based on different criteria including your payment history, how much you owe, length of credit history, and credit utilization. The criteria vary depending on if you’re looking at the FICO® or VantageScore® models. It is not known how many people have a credit score of exactly 300 but, as of Q3 2023, 12.6% of Americans had a credit score between 300 and 579.^[2]

What can I get with a 300 credit score?

You might have difficulty getting approved for different types of credit with a 300 credit score, but there are some options you could try to start building or rebuilding your credit score and give yourself a better chance of qualifying.

Credit cards with a 300 credit score

Getting approved for a standard credit card might prove difficult if you have a 300 credit score, as credit card companies might view you as a risky borrower. Below are some ideas you could consider if you’re trying to get a credit card with a 300 credit score or no credit score at all.

• Secured credit cards - With a secured credit card, you pay a cash deposit upfront which works as collateral. Usually, the credit limit for the account will be the same as the security deposit. If you close the account, your deposits will be returned after settling outstanding balances.
• Being an authorized user - Becoming an authorized user on someone else’s account can help you build your own credit score, so long as the account holder makes on-time payments, keeps credit utilization low and keeps their account in good standing.
• Student credit cards - If you’re a student and you have yet to establish your credit history, you wouldn’t have a credit score at all, so a student credit card can be a good way to start building your credit score. Some student credit cards can be easier to qualify for than standard cards.

Mortgage loans with a 300 credit score

When it comes to buying a house, the minimum credit score for a mortgage can vary depending on the type of mortgage loan you apply for. Typically, lenders will look for a credit score of at least 620 for a conventional loan, and as high as 700 for a jumbo loan. If you have a 300 credit score, you will likely find it difficult to qualify for a conventional mortgage loan.

For those with poor credit, other mortgage loan options are available:

• FHA Loans - Federal Housing Administration (FHA) loans generally require a credit score of at least 500 with a 10% down payment, but this can be 580 if your down payment is smaller.
• VA Loans - The U.S. Department of Veteran Affairs (VA) offer home loan guarantee benefits for service members, veterans and surviving spouses. There is no set minimum credit score for these loans, but some lenders require a minimum score of 620.
• USDA Loans - The U.S. Department of Agriculture (USDA) works with approved lenders to offer guaranteed loan programs for low- to moderate-income applicants. Some lenders may require a FICO® Score of 580 or higher, but lower scores might be accepted in some circumstances.
  ^[3]

If you have a poor credit score and you’re wondering whether you can get approved for a mortgage, or what types of loans could be available to you, consider asking a mortgage lender about your options.

Auto loans with a 300 credit score

There is no set minimum credit score to get an auto loan, but someone with a low credit score and poor credit history will typically find it more difficult to be approved for a car loan. If you do get approved, you can expect to pay higher interest rates on the loan with a deep subprime credit score (500 or below). If you have a 300 credit score, you might need a much larger down payment or a cosigner to improve your chances of getting an auto loan.

Auto lenders typically use the FICO® Auto Score, FICO® Base Score or VantageScore®.^[4]

The data below from Experian as of Q3 2024 shows how interest rates vary for auto loans depending on your credit score. Those with deep subprime credit scores (below 500) can expect an average APR of 15.77% for new cars and 21.55% for used cars. In contrast, someone with a super prime credit score (781 or above) will get an average APR of 5.25% for new cars and 7.13% for used cars.^[5]

Experian data as of Q3 2024 using VantageScore® 4.0
Source^[5]

There are some options you can consider if you have poor credit but you’re looking for car financing:

• Get a co-signer - If you have a trusted person like a family member or friend who has good credit and is willing to co-sign the loan with you, this could help your chances of being approved.
• Research lenders - Shop around and compare deals and eligibility requirements with different lenders; this can help you find the best loan that suits your needs.
• Down payment or trade-in - If you’re able to, having a higher down payment or trade-in value to put down can reduce the amount you borrow on your auto loan, saving you money on interest over the total loan. A bigger down payment helps reduce the risk to the lender as the more you put down, the less likely you are to stop making payments or end up with negative equity.^[5]

What to do if you have a 300 credit score

If you have a 300 credit score or poor credit history and you’re finding it difficult to be approved for mortgages, loans, or different types of credit, there are some things you can do to build up your credit score.

1. Review your credit report

A good place to start is to check your credit report and find out what might be holding you back from building your credit score. It’s important that you know about any negative information like late payments or accounts in collections that could be impacting your score. You should also check for any mistakes or inaccuracies like incorrect identification or duplicate accounts and dispute these to ensure all of the information is correct.

2. Try a credit builder loan

Unlike a traditional loan where you receive the lump sum and then pay it back in installments, with a credit builder loan you pay the installments before you receive the lump sum, minus interest and fees. These monthly installment payments are reported to the credit bureaus, and once they have all been paid, you receive the lump sum of your loan, minus interest and fees. Because payment history accounts for 35% of your credit score, it’s important that you make your payments on time as this is how a credit builder loan helps you build credit.^[6]

3. Make payments on time

Whichever credit accounts you have, whether it’s a credit card, personal loan, or auto loan, make sure you make payments on time every time. According to MyFICO, payment history makes up 35% of your credit score, and missing payments will hold you back from building your score.^[6]

4. Become an authorized user

If you have a trusted family member or friend who has a good credit history and will agree to let you become an authorized user on their account, this can help you build up a positive credit history. Before you enter into this type of agreement, ensure that the account holder is making on-time payments, has low credit utilization, and is keeping their account in good standing. If not, being an authorized user on their account could damage your credit score.

5. Use a third-party rent reporting service

A rent reporting service allows you to report your rent payments to the credit bureaus. This can demonstrate that you are making on-time payments and can positively impact your credit score. Rent reporting services can be free or paid.

6. Manage your credit utilization

Your credit utilization ratio refers to the amount of available credit you are currently using. Maintaining a low credit utilization ratio can positively impact your credit score, while a higher credit utilization ratio demonstrates that you are using more of your available credit, and this could negatively impact your score.^[7]

By paying off your credit card balances every month, you can avoid paying interest on your accounts.

Bottom line

Having a 300 credit score indicates that you have a poor credit history and will most likely struggle to be approved for credit. The good news is there are plenty of things you can do to lift your credit score over time and give yourself a better chance of being approved with better interest rates and terms.

Sources

1. Experian, “300 Credit Score: Is It Good Or Bad?” https://www.experian.com/blogs/ask-experian/credit-education/score-basics/300-credit-score/
2. Experian, “How Many Americans Have 800 Credit Scores?” https://www.experian.com/blogs/ask-experian/how-many-americans-have-800-credit-score/
3. Experian, “What Credit Score Do I Need to Buy a House?” https://www.experian.com/blogs/ask-experian/what-credit-score-do-i-need-to-buy-a-house/
4. Experian, “What is a Good Credit Score for an Auto Loan?” https://www.experian.com/blogs/ask-experian/what-is-a-good-credit-score-for-an-auto-loan/
5. Experian, “Average Car Loan Interest Rates by Credit Score” (Accurate as of April 2nd 2025) https://www.experian.com/blogs/ask-experian/average-car-loan-interest-rates-by-credit-score/
6. MyFICO, “How Payment History Impacts Your Credit Score” https://www.myfico.com/credit-education/credit-scores/payment-history
7. MyFICO, “What Should My Credit Utilization Be?” https://www.myfico.com/credit-education/blog/credit-utilization-be

About the author

Becca has over 10 years of experience as a content writer, working across various industries including finance, digital marketing, education, travel, and technology. Her work has been featured in publications including Forbes, Business Insider, AOL, Yahoo, GOBankingRates, and more.

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